ECONOMICS AND FINANCE
Bachelor	TR-NQF-HE: Level 6	QF-EHEA: First Cycle	EQF-LLL: Level 6

Course Introduction and Application Information

Course Code	Course Name	Semester	Theoretical	Practical	Credit	ECTS
ECO3512	Financial Economics	Spring	3	0	3	6

This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction:	English
Type of course:	Departmental Elective
Course Level:	Bachelor’s Degree (First Cycle)
Mode of Delivery:	Hybrid
Course Coordinator :	Dr. Öğr. Üyesi AYSE ERTUĞRUL BAYKAN
Recommended Optional Program Components:	None
Course Objectives:	This course aims to familiarize the students with the analysis of exchange rates, to provide theoretical background and to establish the understanding of how exchange rate determination is in relation with other key internationsl macroeconomic variables.

Learning Outcomes

The students who have succeeded in this course;
1. Can interpret global macroeconomic changes
2. Have detailed information about exchange rates and foreign exchange market
3. Understand the role of exchange rate regimes in global macroeconomic dynamics
4. Recognize the interaction between financial markets and exchange rate regime
5. Know the differences between national accounts and balance of payments
6. Learn about the critical role of financial globalization

Course Content

Students taking this course learn the definitions and the different regimes of exchange rates, the dynamics that determine exchange rates in the short and long term, within the framework of theoretical models, and see the relationship of the balance of payments with national accounts. In addition to midterm and an oral exams, students prepare a final project in which they use related concepts.

Weekly Detailed Course Contents

Week	Subject	Related Preparation
1)	Introductory Lecture The Global Macroeconomy (Ch1) Data Analysis	Ch 1 (Feenstra & Taylor)
2)	Introduction to Exchange Rates and the Foreign Exchange Market: Arbitrage and Spot Market	Ch 2 (Feenstra & Taylor)
3)	Introduction to Exchange Rates and the Foreign Exchange Market: Arbitrage and Spot Market	Ch 2 (Feenstra & Taylor)
4)	Exchange Rates I: The Monetary Approach in the Long-Run	Ch 3 (Feenstra & Taylor)
5)	Exchange Rates I: The Monetary Approach in the Long-Run	Ch 3 (Feenstra & Taylor)
6)	Exchange Rates II: The Asset Approach in the Short-Run	Ch 4 (Feenstra & Taylor)
7)	Exchange Rates II: The Asset Approach in the Short-Run	Ch 4 (Feenstra & Taylor)
8)	National and International Accounts: Income, Wealth and the Balance of Payments	Ch 5 (Feenstra & Taylor)
9)	Midterm
10)	National and International Accounts: Income, Wealth and the Balance of Payments	Ch 5 (Feenstra & Taylor)
11)	Presentations
12)	Presentations
13)	Presentations
14)	Presentations

Sources

Course Notes / Textbooks:

Feenstra, R.C., and A.M. Taylor (2021), International Macroeconomics, Macmillan, Fifth Edition.

References:

1) NPR Planet Money: popular Economics Podcast on wide ranging topics. Very useful as a starting point on specific topics. The latest episodes are online available at http://itunes.apple.com/us/podcast/npr-planet-moneypodcast/id290783428
2) The Economist: popular weekly economics magazine with in-depth reporting on current events.
3) The Hutchins Center on Fiscal and Monetary Policy (https://www.brookings.edu/center/the-hutchins-center-on-fiscaland-monetary-policy)
4) VoxEU: Research based policy analysis platform by leading economists (www.voxeu.com)
5) Project Syndicate (https://www.project-syndicate.org/)

Evaluation System

Semester Requirements	Number of Activities	Level of Contribution
Homework Assignments	1	% 20
Midterms	1	% 40
Final	1	% 40
Total		% 100
PERCENTAGE OF SEMESTER WORK		% 60
PERCENTAGE OF FINAL WORK		% 40
Total		% 100

ECTS / Workload Table

Activities	Number of Activities	Duration (Hours)	Workload
Course Hours	16	3	48
Study Hours Out of Class	12	5	60
Quizzes	12	1	12
Midterms	1	14	14
Final	1	18	18
Total Workload			152

Contribution of Learning Outcomes to Programme Outcomes

No Effect	1 Lowest	2 Low	3 Average	4 High	5 Highest

	Program Outcomes	Level of Contribution
1)	Build up a body of knowledge in mathematics and statistics, to use them, to understand how the mechanism of economy –both at micro and macro levels – works.	4
2)	Understand the common as well as distinctive characters of the markets, industries, market regulations and policies.	5
3)	Develop an awareness of different approaches to the economic events and why and how those approaches have been formed through the Economic History and understand the differences among those approaches by noticing at what extent they could explain the economic events.	1
4)	Analyze the interventions of politics to the economics and vice versa.	1
5)	Apply the economic analysis to everyday economic problems and evaluate the policy proposals for those problems by comparing opposite approaches.	3
6)	Understand current and new economic events and how the new approaches to the economics are formed and evaluating.	4
7)	Develop the communicative skills in order to explain the specific economic issues/events written, spoken and graphical form.	4
8)	Know how to formulate the economics problems and issues and define the solutions in a well-formed written form, which includes the hypothesis, literature, methodology and results / empirical evidence.	1
9)	Demonstrate the quantitative and qualitative capabilities and provide evidence for the hypotheses and economic arguments.	4
10)	Understand the information and changes related to the economy by using a foreign language and communicate with colleagues.	3